Jewish National Fund is taking the CRA to court over plan to revoke its charitable status

The Jewish National Fund of Canada (JNF) is taking the minister of national revenue to court, arguing a decision to revoke its charitable status was “flawed and fundamentally unfair.”

“Today’s legal appeal will allow JNF Canada’s concerns to be considered before an impartial legal process,” JNF national president Nathan Disenhouse said in a statement released Thursday.

The Canada Revenue Agency (CRA) conducted an audit of JNF Canada’s operations over a complaint that it used charitable donations to build infrastructure for the Israel Defence Forces (IDF), in violation of Canadian tax rules. 

The JNF funds numerous projects in Israel, such as reforestation efforts and the construction of playgrounds. However, as CBC News previously reported in 2019, it has also funded infrastructure projects on Israeli army, air and naval bases.

In its guide for Canadian registered charities carrying out activities outside Canada, the CRA states plainly that “increasing the effectiveness and efficiency of Canada’s armed forces is charitable, but supporting the armed forces of another country is not.”

The JNF filed a notice of appeal with the Federal Court on Thursday seeking to overturn the CRA’s decision. 

The JNF said in the filing that the minister “was under great public pressure” to revoke the charitable status and that the CRA’s ultimate decision was biased as a result.

The decision to revoke the JNF’s charitable status “should be vacated or quashed on the basis that there is a  reasonable apprehension of bias in the minister’s decision,” the court filing said. 

Decision ‘unjust’: Disenhouse

The JNF’s filing said the minister first notified the JNF of its intention to revoke its charitable status in 2019. In a media statement released on Thursday, the JNF said it demonstrated a “willingness to work with the CRA” over several years and made changes to its operations “even though it does not agree with the CRA’s positions.” 

The media statement said the minister’s decision to proceed with revoking its charitable status “undermines a basic fundamental right for all Canadians.”

“Our position is that it is unjust for CRA to revoke a charity because a charitable object that it accepted almost 60 years ago is now no longer considered to be a valid charitable object,” Disenhouse said in the statement. 

The JNF said it remains open to working with the CRA to find a solution outside the legal process. 

The CRA told CBC News it assesses all concerns about registered charities “through a clear regulatory and risk framework designed to prevent bias” in the decision-making process.

The agency said it does not comment on specific details about cases that are before the courts. 

CBC News reached out to National Revenue Minister Marie Claude Bibeau. Her office said it has nothing to add beyond the statement from the CRA. 

The JNF is applying to have the case heard in Toronto.

Independent Jewish Voices Canada called this a “long overdue decision” from the CRA to revoke JNF’s charitable status. The organization assisted on four complaints against JNF to the CRA, which it says prompted the aforementioned audit. 

“Independent Jewish Voices is thrilled to have contributed with our allies to this major blow to Canada’s illegal Zionist charities” said Sue Goldstein in a press release. 

Meanwhile, the Centre for Israel and Jewish Affairs (CIJA) showed support for JNF and said there is a “compelling case to make light of a troubling experience with the CRA.”

“CIJA remains hopeful that JNF and CRA will ultimately identify a constructive resolution, permitting JNF to continue its important work ranging from relief from poverty to environmental reclamation,” CEO Shimon Koffler Fogel said in a statement.